The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,520, sells the remote separately for $95, and offers the installation service separately for $285. The entire package sells for $1,800.

Respuesta :

Answer:

$1,440 ; $90 and $270

Explanation:

The computation of the allocation cost for each is shown below:

TV

= (Sale value of TV ÷ Total sales value) × (Entire package sales value)

= ($1,520 ÷ $1,900) × $1,800

= $1,440

Remote

= (Sale value of remote ÷ Total sales value) × (Entire package sales value)

= ($95 ÷ $1,900) × $1,800

= $90

Installation service

= (Sale value of Installation service ÷ Total sales value) × (Entire package sales value)

= ($285 ÷ $1,900) × $1,800

= $270

The total sales value

= $1,520 + $95 + $285

= $1,800

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